Ethereum Merger, Opportunity or Not?

The update date for The Merge has finally been finalized, leaving analysts with a dilemma as to whether this move to the Proof of Stake algorithm will be more of an opportunity than a problem for them.

Possible consequences of the Ethereum merger

With The Merge update, the Ethereum network will switch to PoS and will no longer need mining activities.

The Merge is a transition that will move Ethereum from a mining-based Proof of Work system to a staking-based Proof of Stake system. This shift aims to reduce transaction fees, it is a change in the type of consensus algorithm to make everything safer and faster.

The upgrade will also cover scalability, but the roadmap will need to be followed, with the second step taking place in the following year. PEthereum chain includes another four-part update called “surge, verge, purge, and plurge,” improvements aimed at making Ethereum more secure and decentralized.

“At the end of this plan, Ethereum will be a much more scalable system. At the end, Ethereum will be able to process 100,000 transactions per second.

The merger will not only be an opportunity for investors who hold the cryptocurrency, but also for all Ethereum-based systems and the crypto asset itself.

Vitalik Buterin described the process leading to the migration from PoW to PoS as a long and complicated transition, but also said that the transition to PoS will make the Ethereum ecosystem more robust.

"Proof of stake is much more secure than proof of work and has its advantages."

However, it is worth noting that many independent users do not at all agree that PoS is more secure than PoW. There are probably more who argue that PoW is more secure and allows for a greater degree of decentralization.

According to most analysts, Merge is a milestone that will reaffirm the seriousness of the Ethereum project as a platform and as a cryptocurrency.

Merger and future value of ETH

ETH is predicted to rise to $5,700 by 2025 and reach $14,400 by 2030.

Despite the fact that the Federal Reserve has been forced for years to wrestle with expansionary policies that have driven the country into hyperinflation, periodic interest rate hikes that cause a natural drag on ETH price and most other cryptocurrencies, Buterin's currency has responded well on a macro level. 

On July 26-27, the Fed will act again and forecasts point to another rate hike, this time between 75 and 100 basis points. On July 28, the US Bureau of Economic Analysis (BEA) will release its estimate covering GDP growth in the second quarter.

This number will be watched very closely as any negative Q2 confirmation will be the verdict of recessionwith all the appropriate consequences. 

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All content in this article is for informational purposes only and does not in any way serve as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.